A PRESENTATION ON

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Presented by:Anjali Nair

Manish SinghPrateek Shrivastava

Devendra PrasadRounit Roy

Human Resource Management:

Human Resource Management (HRM) involves all management decisions and practices that directly affect the people who work for the organization.

INTERNATIONAL HUMAN RESOURCE MANAGEMENT:

INTERNATIONAL HUMAN RESOURCE MANAGEMENT(IHRM) is a process of procuring, allocating, and effectively utilizing human resources in a multinational corporation , while balancing the integration and differentiation of Human Resource activities in foreign locations.

OBJECTIVES OF I-HRM:

To reduce the risk of international human resource.

To avoid cultural risks.

To manage diversifies human capital.

P. MORGAN’S MODEL OF IHRM

Human resource activities

Procurement

Allocation

Utilization of human resources

Host countryA country in which the MNE seeks to locate or has

already located a facility.

Parent country

The country in which a company’s corporate headquarters is located.Third country

Countries other than the one in which the MNC is headquartered or the one in which it is assigned to work by the MNC.

Nations categories where firms expand and operate

Categories of employees in an MNE

Host-country nationals (HCNs) 

Employees born and raised in a host country.

Advantages

No problems with language and

culture.

Reduced hiring costs.

No work permits required.

Disadvantages

Head Quarters may have less

control over operations.

HCNs may still have limited career

opportunities outside the

subsidiary.

Parent-country nationals (PCNs) 

Employees who were born and live in a parent country.

Advantages

Control and co-ordination by HQ is maintained.

Promising managers get international experience.

Assurance that the subsidiary will comply with company objectives policies etc.

Disadvantages

HCNs promotion opportunities are limited.

PCNs may impose an inappropriate HQ style.

Compensation differences between PCNs and HCNs may cause problems.

Third-country nationals (TCNs)

Employees born in a country other than a parent or host country.

Advantages

Salary and compensation may be lower than for PCNs.

May be more familiar with host country than the PCNs.

Disadvantages

Transfers must consider national animosities.

TCNs may not want to return after assignment.

International Recruitment and Selection

Recruitment

It is defined as searching for and obtaining potential job candidates in

sufficient numbers for and quality so that the organization can select the most

appropriate persons for its job needs.

Selection

It is defined as the process of gathering information for the purposes

of evaluating and deciding whom should be employed in particular jobs.

Criteria for Selecting Staff for International Assignments

Difference between IHRM and Domestic HRM

· Responsible for a greater number of functions

and activities

· Broader knowledge of foreign county

employment law

· Closely involved with employees lives

· Cope with more external influences

· Exposure to problems and liabilities

· Management of differential compensation

· Diversity management

· More coordination and travel

· More risk management

Variables that moderate difference between Domestic HRM and IHRM

Main Challenges in IHRM:

Talent identification and development – identify capable people who

are able to function effectively

Language (e.g. spoken, written, body)

Different labor laws

Different political climate

Different stage(s) of technological advancement

Educational level attained

THANK—YOU…